Recursion Pharmaceuticals, Inc. (RXRX) Cash Flow Statement

The ratio of operating cash flow to net income ranged from 0.43 in 2025Q4 to 1.43 in 2026Q2, which indicates that reported losses are not fully mirrored in cash outflows. Stock-based compensation appears to account for a meaningful portion of the difference, suggesting that a substantial share of the economic cost of the platform is being paid in equity rather than cash. Investors should monitor whether the cash conversion gap narrows as the business matures, since a persistent reliance on equity compensation may imply ongoing dilution.

The move toward a -4.2% margin in 2026Q3 is encouraging, but the absolute burn remains large relative to the company's recognized revenue base. The volatility in quarterly results, including a -24.4% margin in 2026Q2, suggests that milestone timing strongly influences the trajectory, so a single quarter should not be read as a durable turn. Whether the margin trend holds will depend on revenue cadence from partners that cannot be confirmed from the supplied data.

Given that the platform relies on high-performance computing and automated laboratories, the low reported capex suggests that infrastructure may be leased, cloud-based, or expensed through R&D. This classification affects how the cash intensity of the model should be interpreted, since operating cash burn already captures these costs. The wide range of capex-to-revenue ratios also reflects revenue volatility more than any deliberate change in investment pace.

The large swings in working capital suggest that collaboration billing and milestone recognition are driving much of the variation in operating cash flow. Analysts should look at multi-quarter averages rather than individual periods when estimating run-rate burn. Limited visibility into the composition of these balances means the source of these swings cannot be fully confirmed from the supplied data.

The absence of distributions is consistent with a company in an investment phase, but it also means the balance sheet is the sole buffer against continued burn. The 2024Q4 acquisition line requires separate investigation to understand whether it represented a strategic acquisition or a financing-related inflow, as the data alone does not confirm its nature. Investors should monitor future capital raises for dilution impact.